In this guide, we outline the key differences between USDC.e and USDC on the Avalanche blockchain. Find out which stablecoin has better liquidity and less smart contract risk on the AVAX network.
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What is USDC.e vs USDC?
USDC.e represents wrapped USDC tokens on the Avalanche blockchain. The token was initially deployed by the Ava Labs team to help build liquidity on the network, however they have stated that the token will soon be deprecated and all liquidity will migrate to the native USDC token.
USDC is the native USDC Coin that is deployed by the Circle team (creators of USDC) on the Avalanche blockchain. These are directly redeemable for US Dollars via Circle's exchange or other platforms like Coinbase.
Key Differences Between USDC.e and USDC
The list below outlines the key differences between USDC.e and USDC to help you decide which stablecoin to hold and use in Avalanche DeFi.
- USDC.e has increased smart contract risks because it is a 'wrapped' version of USDC.
- USDC.e has less liquidity than native USDC on DeFi applications on the Avalanche blockchain.
- USDC.e offers higher yields than USDC because it has an additional layer of smart contract risk.
- USDC.e will eventually be deprecated by the contract creators and all liquidity will be migrated to USDC.
Overall, it is clear that USDC.e has fewer benefits and more risk than USDC. It is generally recommended that investors hold USDC over USDC.e to minimize their stablecoin risks.
How to Swap USDC.e for USDC on AVAX
If you are looking to swap your USDC.e for USDC, we recommend you use Avalanche's largest stable swap - Platypus Finance. They offer the lowest fee swaps with the deepest liquidity compared to any DEX on the Avalanche blockchain. You can follow the guide below to get started:
- Visit Platypus Finance
- Select 'Swap'
- Select USDC.e as the token you have, and USDC as the token you want
- Input the amount of USDC.e you want to swap for USDC
- Execute your transaction and you will receive USDC instantly
Can I redeem USD from Circle with USDC.e?
No, you cannot redeem USD directly from Circle or other platforms like Coinbase with USDC.e tokens. This is because they are the Avalanche wrapped tokens and do not represent native USDC. You will need to use a DEX like Platypus Finance, Trader Joe or Pangolin to swap USDC.e.
Final Thoughts
In conclusion, USDC.e and USDC are both stablecoins on the Avalanche blockchain, but USDC is the preferred choice due to its lower risk, higher liquidity, and direct redeemability for US dollars. As USDC.e will eventually be deprecated, it's advisable for investors to hold USDC instead.
To swap USDC.e for USDC, use Avalanche's largest stable swap, Platypus Finance, for a smooth and low-fee experience. Remember, USDC.e cannot be directly redeemed for USD on Circle or other platforms like Coinbase, making USDC a more versatile option in the Avalanche DeFi ecosystem.
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Dylan Matthews is the Co-Founder and head of operations at Buy Bitcoin Bank, with a background in engineering and experience as a Prop Trader. He has leveraged his knowledge and skills to build and scale the platform, providing users with a seamless experience for buying and selling cryptocurrency.
